4. High Timber Lodge: Liquor License.1
MEMORANDUM
CITY OF µ
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: May 16, 1996
SUBJ: Request for On -Sale Intoxicating Liquor License, High Timber Lodge and
Meeting Rooms, 575 West 78th Street, KDF Corporation
Attached please find the conditions which were
Schackman. Two additional points which I bel .
application are:
- Ancillary Service vs. Primary
i by the city attorney and Mr.
germane to this liquor license
vs. Bar): Two examples come to
mind in attempting to determine ho,to regulate a busi
to the primary business. The first involved Herb Bloor
Bar in the Dinner Theatre complex anticipating providi
entertainment for younger indsviduals. The Bronco "wa
the entire Twin Cities area. -The problem was that figh
parking lot were just not, acceptable behavior for patr6i
Dinner Theatre itself 1VIr. Bloomberg had no choice b
(the Dinner and he did that by closing the bar
-Iss which is an ancillary service
Berg who established the Bronco
g a different form of
highly successful, drawing from
and "washing down" tires in the
attempting to enter or leave the
to protect his primary business
' The secor �am� le involves ,th& Puri fy Wes'4 elf end involy ,sang ustification
p �J
for the lounge �SSpecifically, Country Suites is highly dependent upon our;orporate
community for their Iivelhc�od. Many of our corporations reserve b,locks of rooms at the
,�
Country Suites Hotel throughout "the course of.�he "year! One " "of the corporate guests
decided to visit Filly's during one his staffs �n altercation occurred and the hotel guest
' was hospitalized and did require severssthes. Although Country Suites does not
logically seem to be responsible, the co gyration making the reservation was significantly
concerned for the safety of their clients and seriously considered changing hotels.
Both of the above examples are presented in an effort to emphasize that the primary
business of Country Suites is its hotel operations and they simply will not allow a lounge
Mayor and City Council
May 16, 1996
Page 2
to interfere with their primary business. For example, should it ever get to the point
where local bar patrons present potential harm to guests, there is no question in my mind
but that the lounge will be closed and/or public access will be denied; and
Precedent: Concern was raised at our last meeting as to whether the issuance of
license for the hotel would set a precedent and potentially reopen the last applicat
which had been denied. The city attorney has previously stated that the city couni
tremendous discretion in reviewing liquor applications and does have the ability t
decisions on differences that the council believes are important, i.e. the perceived
of the operation itself, the proximity to children, its location within some type of
ability to police the operations (grounds), etc. Should the council wish t:o see furt
restrictions placed into our ordinance, i.e. value of a lounge/bar, necessity for a to
be incorporated into a primary facility having a value no less than 'Y', etc., can bf
considered; but I do not believe that that type of future change should affect the c4
ability to make a decision on the High Timber Lodge proposal Monday evening.
Approval of the on -sale liquor license is recommended with the conditions as established
between the city attorney and High Timber Lodge.
I has
make
to
's
' CH1 , I NUTH11 , -'COTT , FUCHS , F . A
I ht,rnas J. canci
Rc,�cr N- Knttt;cu,
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Cary C. l�uchs
' Jat„cs R. Walston
Him R. Knctsc}h
Swes<tt) tu,t Pace
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Mr, Don Ashworth
Chanhassen City Hall
690 Coulter Drive, Box 147
Chanhassen, Minnesota 55317
f�l d.'_� 16 . `± 6 14 10 N o . i1 =i E- P . 0
CAMPBELL, KNUTSON, SCOTT & FUC.HS, P.A.
Attorneys at Law
RE: HIGH TIMBER LOUNGE
Dear Don:
Andrea NIc DmN ell Puchlc•r
Mattheka K. Rrctkl
John F, Kelly.
Marl;ucritc M, McCarr<xt
(:.cr,rt.i "l . Stei�i•censeut
Pursuant to direction from the City Council I have had discussions with a
representative of the owner of the proposed High Timber Lounge. My instructions were
to compile a list of conditions that would ensure that the business is a "lounge" not a
"bar". The owner's representative has agreed to the following conditions:
• the business may not open until noon
• no public dancing -- dancing at catered or private
events would be allowed
• no neon signs
• no window signs
• use of the word "lounge" not "bar" in any signs
• no room service
(612) 452.5000
Fax (612) 452- 5550
May 16, 1996
I am sure other conditions could be added on. The Council will have to decide if
these or additional conditions satisfy their concerns.
Very truly yours,
I RNK :srn
CAM B UTSON, SCOTT
&. CHS, P.A.
B
Roger N. Knutson
Q, ,;.. -. 11 i . L',_,..J.- 1,Osli;__ f' "-- . . 1 7Qnr a /l,, CC1 y
MAY. -16' 96 MU) 1 :38 NAT L LODGING M ING TEL:612 -943 -5666 P. 002
1
May 16, 1996
Mr. Roger Knutson
Campbell Knutson Scott Fuchs
1380 Corporate Center Curve
Suite 317
Eagan, MN 55121
RE; Chanhassen Banquet Room and Lounge
Dear Mr. Knutson:
Pursuant to the direction of the City Council and our subsequent phone conversations, this letter
is to outline a few additional points that we would like to make in support of our liquor license
application.
The facility to be licensed is a portion of what is commonly known as the "old animal fair
building" planned to be fully re- habed, at significant expense, to a level of finish compatible with
the recently expanded Country Suites Hotel.
The dual purpose meeting room, banquet and conference center portion of the building, designed
to accommodate approximately 168 people at banquet seating, will be rebuilt with a completely
new structural system (columns, beams, joists and roof) to provide a minimum 10' clear ceiling
height and divisible into smaller meeting room spaces by "panelfold" or similar portable dividing
walls. Receiving, storage and caterer's kitchen facilities are being provided to service functions
that will be booked into this space.
The existing high timber room will also be totally re -habed with new entrxices created, new
doors, windows and interior finishes provided. This space will become the "High Timber
Lounge ", designed to seat 57 guests in the lounge -configuration and no more than 11 at the
limited bar space_
The re -hab of the building will be completed by an expansion to provide new rest rooms,
telephone area, coat check room, storage, a new public entrance on the north and a connecting
link to the hotel_ A new mansard roof is planned and exterior finishes designed'. to architecturally
unify this space with the hotel. New water, sanitary sewer, storm sewer and fire protection
services are being provided_ Plumbing, electrical, mechanical, heating, ventilation and air
conditioning fixtures and equipment will likewise be new. The gross floor area of the rehabed and
expanded space is 4,500 s.f
U Y. -16' 96(THUj 14:38 NAT L LODGING, GO, ING TEL.612 -943 -5666 P. 003
Mr. Roger Knutson
May 16, 1996
Page 2
The ability to serve liquor at this facility is being sought to round out the services of a 120 room
hotel by creating a successful full- service meeting room, conference center and banquet facility.
To accomplish this, liquor becomes an essential ingredient in the success of such a venture and
needs to be accessible to the public to be economically viable.
This meeting room, conference center, banquet and lounge business will be a separate legal entity
and is planned to operate quite differently from other establishments where liquor, or liquor and
food, may be the only source of economic benefit. The positive benefits of this operation wiII be
to fortify, strengthen and expand services to our many corporate customers who at present cannot
be served in Chanhassen. Numerous Chanhassen corporate clients have indicated their need to
have these services available locally. They are currently traveling to other locations when booking
some of their meetings and functions. We also will be able provide these additional services to the
individual business, vacation and family traveler. Providing these services is therefor expected to
enhance hotel operations by improving room rate and occupancy.
The liquor service portion of this business will be distinguished from a typical bar operation in
numerous ways. For example:
• The lounge will not be open and beverages will not be served before 12,01 p.m.
• There will be minimal customer seating at the service bar (11). 84% of potential patrons of the
lounge may be seated at tables, couches or lounge chairs.
• A significant majority of the beverage sales volume is expected to be derived from group
functions.
• Intoxicating beverage service will be available only in the lounge, meeting room and banquet
areas.
• Room service will not be available from the lounge to the hotel_
• The facility will be signed as a lounge, not as a bar_
• There will be no neon window signs. (Budweiser, Miller, etc.)
• Charitable gaming will not be allowed in the licensed premises.
• Live music or entertainment will not be a part of the lounge operation unless incidental to a
group function_
MAY. -16' 961THU1 14:,39 NAT' L LODGING CO. INC TEL -5666 P. 004
Mr. Roger Knutson
May 16, 1996
Page 3
i
• Public dancing will not be allowed in the lounge area (not intended to preclude dancing
associated with functions such as wedding receptions, anniversary celebrations, corporate
holiday parties, etc.
For background and review purposes, I have enclosed a copy of our December 28th letter
outlining the conditions and planned operations of the premises.
Please give me a call with your thoughts on the foregoing. Best regards_
Sincerely,
NATIONAL LODGING COMPANIES, INC.
Alan W. Schackman
Vice President
Development and Construction
AWS /alr
Enclosure
UY. -16' 96 (THU) 14:40
1�
December 28, 1995
NiF,MORA.M7UM
To: Karen Engelhardt, Office Manager
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
Re: Liquor License
Per our recent conversations, this letter is to outline the conditions and planned operation
of the premises that we are requesting to be licensed for the sale and consumption of
alcoholic beverages.
I. The area to be, licensed will be as cross hatched on the attached exhibit Z and
approximates 4,500 square Feet,
?. The operational floor plan will be generally as illustrated on the attached exhibit 2.
3. The Lounge and Banquet/Meeting Room areas may operate independently with
different hours of operation.
4. The Lounge and Banquet�leeting Rooms may be Ieased to different operators.
5. The hours of operation for the Banquet/Meeting Room area might be 6:00 am to 1:00
a -m.
6. The hours of operation for the Lounge will be those hours as prescribed by City
Ordinance and State Law covering facilities serving alcoholic beverages.
7. The facility will be connected to but will not be a part of the Hotel Operations-
8, The bar & lounge will be open to the general public during permitted hours.
9. T hc; Banquet/Meeting Room space will be booked by a Marketing Representative of
the Hotel giving the Hotel exclusive rights to that space.
10- The Bar, Lounge, Banquet and Meeting Room building may be leased or owned by a
Corporate Entity other than Chanhassen Suites L.L -C., The owner of the Hotel.
NATIONAL LODGING COMPANIES, INC.
ryS55 Wv. 78th Strout, Suite 220 Eden Prairio, MN. 55.144 612- 944-5700
NAT' L LOGGING GO, 1 NC
TEL:612-943 -5666
A A
NATIONAL LODGING
612 -043 -5666 fax
P. 005
MAY. -16' 96 (THU) 14:40 NAT L LODGING CO. ING TEL :612 -943 -5666 P. 006
NA'T'IONAL LODGING
1
NATIONAL, LODGING COMPANIES, INC. ,
9555 WL —St 7 6th S tITCt, Suite 220 Eden Prairie, M-" 55344 612- 944 -5700 P512.943 -5606 f n,
'
11. The Lounge, Banquet and Meeting Room building will have Water, Sanitary Sewer,
Electrical, Natural Gas and Fire suppression systems separate and independent of the
Hotel Building and will continue to be a separate tax parcel.
,
12. Cross easements will be provided for parking and common area maintenance along the
lines previously approved for a restaurant operation, if appropriate.
,
The intent of this effort, as we have discussed, is to create an ordinance amendment,
acceptable to the city and in compliance with state law, that would allow the insurance of a
license to a first class facity compatible in design & quality to the expanded hotel.
The amendment could be limited to facilities adjacent or coTmected to Hotels with 120
'
rooms or more thereby presumably givinb the city a large measure of control on the
number of licenses that might be requested.
'
This concept was used by the city of Fargo, ND to accommodate the Country Suites in
that city.
'
I would be pleased to meet with you at your earliest conveniance to answer any questions
and get the formal application process underway, Best Regards.
Sincerely,
National Lodging Co. hic.
'
Ad c'Ldxn�i
Al Schackman
cc. John K.
Terry D-
Bob H.
,
Gene M.
Malvin L,
,
NATIONAL, LODGING COMPANIES, INC. ,
9555 WL —St 7 6th S tITCt, Suite 220 Eden Prairie, M-" 55344 612- 944 -5700 P512.943 -5606 f n,
�J
1
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City Council Meeting - May 6, 1996
our senior center sign up to assist our support staff during lunch hours and busy hours so we had Betty Kline
and Maryann Littfin up helping and they're real enthusiastic about the program also. And then also Dr. Dave
McCollum is our city health official and he has assisted in some input to get the program off the ground. Our
biggest customers are children but I'm surprised to see how many adults are buying helmets also. A lot of
parents are coming in and saying well you know, our kids have helmets but I'd never go out and buy one for
myself up until now. And I had a senior citizen come in and she said she bicycles with her granddaughter a lot
and the granddaughter ... you know gramma you should have a bicycle helmet on so she came in and bought one
so, we've had a lot of fun stories to share with one another. As you can see, these are a couple of samples of
what the helmets are like. We also have some other colors. We've got a special pattern for the toddlers as well
and these come with assorted pads so you can custom fit them. We advertised with a flyer, as you see. That's
gone out in the Villager and that's going out to every school in Chanhassen's jurisdiction so every child will
bring that flyer home. We've also got it posted at the fire station sign and I've got it advertised on cable as well
as an advertisement going into the city newsletter as well as I have it attached in my neighborhood watch letters
so we've got it well advertised. We really should be getting the word out. We're real excited about the
response we've received from the program and we plan on continuing this to the end of June.
Scott Harr: ...every one that comes in for a helmet also gets a packet of crime prevention material that Beth has
put together. I'm really proud of Beth. This is a spectacular program.
Mayor Chmiel: Thank you. You're doing a great job.
PUBLIC HEARING: REQUEST FOR AN ON -SALE INTOXICATING LIQUOR LICENSE, THE HIGH
TE"BER LOUNGE AND MEETING ROOMS, 575 WEST 78TH STREET, KDF CORPORATION.
Don Ashworth: This is the application that you had briefly reviewed from approximately a month ago. Karen
has continued to work with the attorney's office and Al Schackman from National Lodging. So the application
has been put together. It's been reviewed by Public Safety and we're recommending approval.
Mayor Chmiel: Okay, thank you. Would you like to make a presentation at this particular time to Council?
Al Schackman: Mr. Mayor, I think we covered all of the reasons a month ago that we requested this. If there's
any questions, I'm certainly here to answer them.
Mayor Chmiel: I'm just not sure if some of the people who hadn't been here, this being a public hearing, gives
that opportunity for people to ask some questions.
Al Schackman: I will just take a minute just to illustrate that we have moved the plan along, and that's not to
say that we're anticipating any kind of resolution beyond the recommendation of staff and I'll just use this to
illustrate that. We have our finishes determined and we have.
Mayor Chmiel: Maybe you'd like to put those up on the easel up front here.
Al Schackman: We have a rendition of what we expect the lounge area to look like. This does not include of
course the banquet space. It's also beyond the drawings, what you saw before, we have advanced the plan to
that extent. This is merely the color selections and finishes.
F
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City Council Meeting - May 6, 1996
Mayor Chmiel: Very good. Thank you. Is there anyone wishing to address this at this particular time? If so,
please come forward and state your name and your address and your concerns. If seeing none, I'd like a motion
to close the public hearing.
Councilman Berquist moved, Councilman Mason seconded to close the public hearing. All voted in favor and
the motion carried. The public hearing was closed.
Mayor Chmiel: Steve, do you have any concerns in regard to the proposal?
Councilman Berquist: Well I went back to the February 26th Minutes and I was reading a couple of my
questions and I was fairly specific in asking whether or not it was going to be a public lounge as opposed to
being restricted to hotel guests or conferees or wedding parties or anything else. I did that because I was having
some second thoughts in approving another public establishment and in reading the cover letter that was
submitted with the report, there was a sentence that, the last, second to last sentence in the first paragraph is this
establishment would be open to the general public and that the first sentence of the second paragraph is the
license being sought is for an exclusive liquor establishment and only catered food service would be available.
To me exclusive means restricted to certain persons so I've got a, there's a little bit of an opposite definition
there within the context of the memo. And then in the notice of public hearing we have a reference to selling
intoxicating liquor for catered banquets, wedding receptions and conferences and to hotel guests and then lastly,
almost as an after thought, and the public. Now I know when I had specifically asked the question as to
whether or not I could walk into the lounge without staying in the hotel and purchase a mixed drink you said
yes. That has not changed? What I'd like to do Mr. Schackman, and I'm certainly going to listen to what the
other council members have to say but I would really like to explore the types of limitations that would allow
the facility to be workable and yet restrict hours and accessibility. I'd like to talk about that some but that's the
extent of my comments for now.
Mayor Chmiel: Okay.
Councilwoman Dockendorf: Well my biggest hang -up is also being open to the general public and opening
another bar in town is certainly not foremost on our list of things to accomplish this year. And I recognize and
appreciate the business need for it, and I think our community needs businesses like the hotel and we need to
help you thrive. Like I said, our hang -up is it being open to the public and I certainly wouldn't want to close
down the exterior entrance. I think we need that. That secondary entrance that doesn't go through the hotel.
But I guess I agree with Steve that, I don't know whether, I mean last time I asked about advertising limitations
and you certainly gave your word that it wasn't your intention to advertise the bar uniquely but to advertise the
catering aspect of it instead. And you had also mentioned that the hours would probably be even more
restricted than what we currently allow. I'm still having a problem so I don't know what solutions, if any,
would make me feel more comfortable with this but if there are any, I'd certainly like to explore them.
Mayor Chmiel: Thank you. Don. Maybe you can make a clarification on it as far as what exclusive means.
Don Ashworth: That is a term that is out of city ordinance and I believe it's directly out of State Statute. It
represents the type of liquor establishment so that the statute differentiates an exclusive liquor establishment,
which really is a bar, from a operation where 60% of the sales occur from food which is prepared by the owner
and sold on site. A good portion of the business actually could come from food sales but it would be probably
to a firm that would cater it in so it would not really be a part of the hotel, and so therefore the only ... we really
had to look to was putting them as an exclusive liquor operation. I know that the City Council doesn't like to
10
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City ouncil Meeting - May 6 1996
Y g Y >
hear that but those are the two choices under State Statute. As it would deal with the general public, and this is
dealing with comments back with Public Safety. Staff at least considers this application will operate very much
like the Dinner Theater. I mean there is a bar within the Dinner Theater proper and you can go in there and
purchase a drink and not in any way attend a production, but I've never seen it happen. I'm sure people have
' done that, but you don't get regular drop -ins that I'm aware of at the Dinner Theater. So I do not believe you're
going to get the massive public. Those are staff comments.
Mayor Chmiel: Okay. Michael.
Councilman Mason: Is Applebee's going to have a liquor license, do you know?
' Don Ashworth: Kate is shaking her head yes.
Councilman Mason: I do see this operation as extremely similar to that of the Dinner Theater and I don't know.
The issue of where to put bars and where not to put bars and where to allow drinking and where not to allow
drinking is always pretty contentious. In view of the fact that I do see this as very similar to what's going on at
the Dinner Theater, I'd be hard pressed to be opposed or quite honestly to look for any changes in it.
' Mayor Chmiel: Okay, thanks. Mark.
Councilman Senn: When the applicant was in before I guess I made a comment and I guess I'll just repeat it
' and that is I find it difficult to support another, I'm going to say exclusive bar. Under that term in town. I feel
strongly that if we're going to have additional liquor establishments, they should be in effect as an adjunct to
food and restaurant. I don't like the idea of this being open to the public and the way it's basically being
' approved, it can very easily be opened to the public and marketed very heavily to the public. We have no
controls on it at all that way. I'd much rather see this be approved in relationship to liquor served along with
catering banquets for business purposes only or in relationship to hotel functions where there's also food present.
That's pretty much what I'm looking at...
' Mayor Chmiel: Okay, thank you. I think some of my concerns have really been addressed. The only thing
that I see is, I recall this was going to be leasing of hotel guests not taking drinks to their rooms. The question
' I have is, how will that be done other than visually seeing those people. Will there be any kind of watch area
by someone within that particular location?
Al Schackman: From our point of view as operators, I don't believe the question's going to be one necessarily
' of policing it. It's a matter that by law and by licensing that we're prohibited from serving room service.
Consequently, should we be granted the privilege of having a license, we're going to most certainly operate that
facility in a way that would preclude us in losing the right to do so. It's very important that we have the ability
' to serve liquor through that lounge. It's a tremendous investment there. The traveling public, in most hotels,
particularly when you start exceeding 100 rooms, look to have a lounge of some sort and that's been our
experience in Fargo. It's been our experience in White Bear Lake. It's been our experience in Northwest Inn.
' Hence the reason here, the whole concept of the banquet, meeting room type space is integral to the ability to
serve liquor as a part of those functions. To restrict the public would be extremely detrimental to our operating
costs and believe me, we would not be proceeding, we would not be able to proceed with the banquet meeting
space without... within the parameters of the law that allowed as an additional income source. The charge seems
' to be one Mr. Berquist that we have attempted to conceal the fact that we're going to sell to the public...
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City Council Meeting - May 6, 1996
Councilman Berquist: Oh no. No, I'm not.
Al Schackman: Never has it been secondary. Never has it been.
Councilman Berquist: As evidenced by my questions to you on the 26th of February, I am not intimating that
in the least.
Al Schackman: So I mean we've been straight forward and that's our intent. That's our plan. We submitted a
lengthy explanation as to how this facility was going to operate. We feel that we're certainly a less than
insignificant corporate entity in Chanhassen. We have a tremendous investment in the hotel and the expansion
The continued economic health of that hotel will certainly depend upon our ability to do the banquet, dual
meeting room space and to do a lounge and we respectfully request your approval of this application. Thank
you.
Mayor Chmiel: Did you have your question answered? The one that you had prior. At the end of your
discussion. That's why I was asking you.
Al Schackman: Maybe I didn't answer the question as to how we police taking drinks to rooms.
Mayor Chmiel: No, I think you covered it. And it is by State Statute and that's what I was wanting to hear you
say.
Councilman Berquist: And in essence, my last comment before I passed to Councilwoman Dockendorf was the
discussion of limitations that would allow the facility to be workable and yet restricted in terms of hours of
availability. You've already pretty much already answered that by saying that unless it is a public facility, you'll
be unable to make it work. Was that what I heard?
Al Schackman: I don't want to make it sound that harsh. The idea is that we need the ability to operate it as a
public facility to satisfy the needs of a 120 room hotel. And I don't know how to shorten that up. To my guess
they're going to be upset if they don't have the right to go to the lounge and have a drink in the absence of my
having a function at that point.
Councilman Berquist: Well I'm not, I have no problem with your ability to serve your guests at any time of day
or night, depending upon what your operating hours are. My concern, and I think a lot of the other members
here concern is the precedent we set by allowing a liquor establishment, an on -sale liquor establishment to be
open to the general public in the city of Chanhassen with no food service available. Well I think that sums it
up. So if in fact there are some limitations that can be tied to the operation of the facility that allows you to
serve your patrons in a manner that you see fit, that's the direction I would like to take.
Al Schackman: I guess from our standpoint sir, again I don't know I can serve my guest that may check in at
2:30 in the afternoon and want to go to the lounge and have a drink and not be able to serve anybody else who
walks in the door. I think there could be policing provisions and the regulations as established by law and as it
relates to an exclusive liquor license. The law provides for what we're attempting to do.
Councilman Berquist: I understand.
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City Council Meeting - May 6, 1996
Al Schackman: Then it becomes up to us to manage this thing from a standpoint that it does not become a
dive. As you can see from what we're proposing to do, this is probably going to be, this if approved, would
probably be the nicest lounge facility in the city of Chanhassen.
Councilman Berquist: I don't doubt it for a moment.
Al Schackman: And we intend to operate it that way.
Mayor Chmiel: Don. Would you make a clarification?
Don Ashworth: The city attorney has previously stated, and too bad this evening. Tom is present. I think the
liquor aspect is one that typically has been more Roger's area of expertise but my recollection of his statements
back to the City Council has been that the City Council has a great deal of discretion as it deals with the
issuance of a liquor license and making a determination as to whether or not the applicant has followed
whatever rules you've established. Accordingly I feel comfortable that if the City Council were to approve this,
and in doing so establish or instruct the city attorney to prepare conditions that would limit advertising to the
general public, which would prohibit any type of signage saying "Band Playing Tonight ". I think we've seen
some of that over here at Filly's. And potentially even, I don't really like the restriction you know where no
more than 25% of the business shall be general public not staying overnight because it's virtually impossible to
take and enforce. But if you were to establish reasonable conditions like that, I am sure that that would be
sustained.
Al Schackman: If I may Mr. Mayor. If I may, I'm somewhat at a loss as to why the operation of this facility
should be subjected to regulations beyond what is already law when there are other liquor licenses that are not,
and they're certainly not as nice of facilities. And they certainly don't embody the type of investment that we
have here.
Mayor Chmiel: I think Council has some concerns because of a denial for a liquor license within a given
restaurant in one of the centers. It's not what your facility is. I think it's very complimentary and would serve
you very well by having this located within that proposed location. I think that as Don has mentioned the fact
too that conditions may cover some of those concerns in regard to this proposal and maybe if there are no other
questions, I would entertain a motion in regard to this. I can see this as a very positive, for the hotel as a
business. As he's mentioned, the many dollars invested in there. There's also going to be much. Well I
shouldn't say much need but for those who will stay at that particular hotel, will want to have something of just
maybe a casual drink or even pop, whatever and they don't have that availability there for them to be very
casual and to sit back and just relax. I guess that's at least where I feel I'm coming from.
Al Schackman: Mr. Mayor. One of the other points that I made last February is that this also serves another
purpose and it's totally incidental to the question that you're examining as it relates to liquor. That I believe that
it most certainly addresses the problem of taking an existing building that is totally obsolete, totally non-
functional and creating something that becomes from the standpoint of real estate. Being a piece of real estate
that is again a functional, valuable piece of real estate and putting it to use and that's been the plan all along. If
this doesn't happen, most certainly it's not the end of the world. Some other use may become realistic for that
property. This is a use in hand that would make it work now. And in terms of precedent, I could see a
condition attached to this, or to this approach whereby anybody else who wants to spend between $400,000.00
and $500,000.00 for a hotel. Another $200,000.00 for the lease hold improvements to do this kind of deal.
That those would be the conditions for somebody else getting the same kind of a license. We're putting
13
City Council Meeting - May 6, 1996
ourselves on the line. We're taking on a lot of risk. We're willing to do that. We see the payoff being down
the road.
Councilman Berquist: I don't, you know I understand what you're saying and you made that same comment
within the Minutes on 2/26. And I agree with you. I think perhaps that you're taking us a little too personally.
Al Schackman: Oh I don't take it personal.
Councilman Berquist: This isn't against the motel. This isn't against the old Animal Fair building. Well it's not
against anything. You're trying to build a bar. You know we're trying to do what's right, believe it or not, for
the overall community and if in fact we have questions regarding on -sale liquor, you'll just have to bear with us.
Al Schackman: I appreciate that. I'm merely trying to debate the question. It's important to us to have a
decision. If this doesn't apply, we can drop what we're doing and move on to something different elsewhere.
Councilman Senn: Can I ask a question?
Mayor Chmiel: Mark.
Councilman Senn: One of the things I tried to think about in relationship to this decision, and I do quite a bit
of traveling. I was hard pressed to think of another hotel anywhere in the United States that has purely a liquor
lounge without any food service or restaurant available somewhere on the same premises. And to me this is
creating a situation that I'm sorry, I've never encountered before. And I have some problems with that. To me
you know I agree that it's a strong element to your hotel, or any hotel, okay. And most hotels I've stayed in
have lounges but they also have restaurants that serve food with it. I've never seen the two separated before.
This is the first time I've seen it.
Al Schackman: Does that make it bad sir?
Councilman Senn: I think it makes it effectively creating a public type of bar in this community that I would
just as soon not see one which effectively starts a series of such facilities, yeah. Because if I give it to you, that
means I have to start giving it to everybody else.
Councilman Berquist: It doesn't make it bad but it makes it less attractive. That's the real bone I think. That it
simply makes it less attractive. So now it's something we have to figure out.
Al Schackman: Well certainly we'll listen but in my mind, from an operating standpoint, it's very, very hard for
me to imagine how we can restrain our operations beyond those conditions already established by law. We
think that you're well protected. We also look at ourselves as not being somebody who's trying to create a dive.
Trying to create that kind of a liquor operation. This is to be a support service to a 120 room hotel and it is
key to the creation of the meeting and banquet room space...
Councilman Senn: Which is going to effectively only function as it relates to catering food.
Al Schackman: Correct.
Councilman Senn: So what's the problem with serving liquor only in conjunction with catering food?
14
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' City ouncil Meeting - May 6, 1996
tY g Y
Al Schackman: So then my hotel customers can't go to the lounge to buy a drink unless I happen to be catering
' a function.
Councilman Senn: Well sir, I mean you've had a hotel operating there for years without a bar in it.
' Al Schackman: Well there's a lot of changes in the hotel industry and the current hot button if you will in the
hotel development is limited service needs hotel. That's what we operate...
' Councilman Senn: I stay in them all the time but I don't see lounges by themselves sitting in any of them. Not
one...
' Al Schackman: Well maybe this should be the first.
Councilman Berquist: Well, I'd like to make a motion to table this and give the Council a chance to cogitate on
it.
Councilman Mason: It's a public hearing still.
Mayor Chmiel: No, we closed the public hearing.
Councilwoman Dockendorf: I'd like to see a list of ideas, perhaps from the City Attorney, in terms of how we
can put some constraints.
Councilman Berquist: Work with the applicant.
' Councilwoman Dockendorf: Absolutely.
Councilman Berquist: See what's workable. If it proves to be workable, great. If it proves to be something
that we're, that we have some serious concerns with which I, I want to see it, believe me. I want to see it
happen but I also want to see it done in a manner that I am comfortable with. I mean if I wasn't sitting here on
this board. If I was in any other town and I did not have to pass judgment on it, I'd say hey. Sounds like a
' great idea. Why don't those guys, why can't those clowns approve it. Well, this clown has a hard time just
arbitrarily saying yes to on -sale liquor in the city of Chanhassen at the present time.
Al Schackman: I hope that we have not said anything, certainly that I've not said anything that suggests that
there are clowns acting.
Councilman Berquist: No, that's my word only.
' Al Schackman: Because I sincerely respect the right of this particular Council to pass judgment on a proposal.
My job here is to sell you on the fact that we're going to need to operate this in a manner that does not create a
' problem for anybody who may have approved that. It is truly a most important step for us to achieve because
we don't create this banquet space, if we don't create the meeting room space, if we don't create the lounge,
another hotel is going to be looking very, very closely at doing that in this town. Now they provide food.
That's fine, but we think we've demonstrated a track record from the time that we've been here as a good
corporate citizen, that we should be worthy of your consideration and I would again, we respectfully request
that.
1 15
City Council Meeting - May 6, 1996
Mayor Chmiel: We do have a motion on the floor for tabling.
Councilman Berquist: Is it specific enough?
Mayor Chmiel: Yes.
Councilwoman Dockendorf: I'll second it.
Mayor Chmiel: Moved and seconded. Any other discussion?
Councilwoman Dockendorf: Well I think that, well I appreciate the fact that this would be a great addition to
downtown. If it's going to happen, it should happen there. I mean I realize the City's benefitting from this
proposal as well so ... beneficial but there's just a couple things we need to get comfortable with.
Councilman Berquist moved, Councilwoman Dockendorf seconded to table action on the request for the on -sale
intoxicating liquor license for The High Timber Lounge and Meeting Rooms at 575 West 78th Street, KDF
Corporation. All voted in favor and the motion carried,
SITE PLAN REVIEW OF A 38,948 SO. Fr. OFFICE/WAREHOUSE FACILITY; LOT 1, BLOCK 1,
CHANHASSEN BUSINESS CENTER 2ND ADDITION, TECHNICAL INDUSTRIAL SALES H, RAY
COLLINGS.
Kate Aanenson: This is a lot located in the Chan Business Center 2nd Addition. Just over here off of Audubon
Road and Lake Drive East. The applicant is proposing an industrial... it is consistent with the PUD standards we
developed for this industrial park. The architecture we believe is well conceived. There was a modification that
the Planning Commission had along one large spans of wall. There was additional windows put in here. They
felt that that wall was too long... We also believe that the materials selected for the project: are also consistent
and of high quality. One of the concerns that the Planning Commission did have and the staff had put in the
report was that we believe that additional landscaping still needs to be put in the project to buffer the, especially
buffer the loading dock areas in this area. That is a condition of approval. Again with that:, I'll let the architect
speak to more specifics of the building but we believe it is consistent with the PUD and are: recommending
approval with the modifications and conditions of the staff report.
Rick Wesling: Hi, my name is Rick Wesling with TSP/EOS Architects and Engineers. The building you see
before you is, as you stated, roughly a 40,000 square foot building. We're looking at a warehouse office
building with roughly a 14 foot... building. It's not a tall warehouse office building like you might see on a
much larger piece of property. It's roughly 250 feet by 160 feet deep. As discussed, we've chosen materials
which are consistent in the PUD intent. Basically it deals with the building, and I'm going to put it back down
here to the elevation. The feel of the building is lighter color. It will be a smooth face, concrete block unit.
The color of this block is integral. That is it goes all the way through, and it will be accented with horizontal
band and chevrons, if you will for lack of a better term, over rock faced block of this darkest color. As the
building meets the ground, or the base of the building, from this darker band on down will be this lighter rock
faced block right here. At the entry we've chosen to accent the architecture by using what's called a standing
seam metal roof. This is this red color right here. This deep red and as well as adding sorne face brick of these
two colors. The majority of the face brick at the column will be this lighter red and then the darker color tying
in with the horizontal rock faced band will happen right about this height as the band travels all the way around
the building. In addition to, and at staffs suggestion to articulate this facade more, it is 120 foot long facade.
16
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MEMORANDUM
CITY OF 4
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Don Ashworth, City Manager
FROM: Karen Engelhardt, Office Manager
DATE: May 2, 1996'
Action by City Administrator
Endorse
Modified
Rejected
Dat
Date Submit ed to Commission
Date Suhmitted to Council
( -„ ? /
SUBJ: Request for an On -Sale Intoxicating Liquor License, The High Timber Lounge
and Meeting Rooms, 575 West 78th Street, KDF Corporation; Public Hearing
' Al Schackman from National Lodging Corporation appeare
regarding their desire to acquire an on -sale intoxicating,ligt
Lounge and Meeting Rooms in the old Animal Fair buildin
corridor from the hotel and to remodel the Animal Fair Bui
site plan). They are trying to attract groups where a cater&
including business meetings, wedding receptions, etc.; and
' have a drink (they could not carry a drink back to their roor
open to the general public. The meeting room and bar area
sq. ft.
' The license being sought is for an exclusive liquor establist
service will be available. The proposed bar area is separate
own legally described parcel. The city attorney finds that tl
city code and that state guidelines have been met°
' The officers of the corporation'are John Klinkhammer from Chaska; Victoria Nelson from Tonka
Bay; Jerry Easley from Minnetonka; and Terrance P. DeRoehe from Burnsville. The Public
Safety Department has completed background investigations on each officer, including criminal
history, outstanding warrants, and driving records; and has found no negative comments.
A public hearing notice was sent to all property owners within 500 feet of the proposed liquor
establishment and no comments have been received by this office.
I before the city council in February
)r license for the High Timber
They propose to construct a
ling for meeting rooms (see attached
meal and liquor could be provided,
place where hotel patrons could
). This establishment would also be
approximately 3,180
(a bar) and only catered food
a the hotel and is located on its
guest is in compliance with our
t
Mr. Don Ashworth
May 2, 1996
Page 2 `
RECOMMENDATION
Staff recommends approval of the on -sale intoxicating liquor license request from High Timber
Lounge and Meeting Rooms contingent upon receipt of the following documents: a $5,000 bond,
certificate of liquor liability insurance, and a fee of $11,356. Once these documents are received,
I will submit the application to the State of Minnesota, Department of Public Safety for final
approval.
1
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M M M r M M M M M M M M M M w M = r
r
S-, P.M►ll &W Cankwc4 koora.
NATIONAL LODGING COMPANIES, INC.
Banquet Rooms Lounge Meeting Rooms
1
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
NOTICE OF PUBLIC HEARING '
REQUEST FOR AN ON -SALE INTOXICATING LIQUOR LICENSE
HIGH TIMBER LOUNGE & MEETING ROOMS, 575 WEST 78TH STREET
NOTICE IS HEREBY GIVEN that the Chanhassen City Council will hold a public
hearing on Monday, May 6, 1996 at 7:30 p.m. in the Council Chambers at 690 Coulter Drive, to '
consider issuing an on -sale intoxicating liquor license to Country Suites Hotel, 575 West 78th
Street, to sell intoxicating liquor for catered banquets, wedding receptions, and conferences; and
to hotel guests and the public. Country Suites is requesting a license to sell liquor without food '
sales.
All interested persons may appear and express their opinions regarding this application at
said time and place. Chanhassen City Code requires that all property owners within 500 feet of
the site be notified in writing. If you have any questions, please feel free to contact City Hall.
Karen J. Engelhardt
Office Manager
Phone: 937 -1900, ext. 104
(Publish in the Chanhassen Villager on April 18, 1996)
11
oco American Oil Co.
B.C. Burdick
Chanhassen Inn
O . . Box 3428
426 Lake Street
531 79th St. W.
Oakbrook, IL 60522
Excelsior, MN 55331
Chanhassen, MN 55317
1
Chanhassen Retail Ltd. Prtshp
Bloomington, MN 55437
Chanhassen Realty Co.
c/o Weis Asset Mgmt. Inc., Ste 110
Mr. Russell Pauly
1 /o Mason Properties
Suite 110
Pauly's Bar & Restaurant
1589 Highway 7
3601 Minnesota Dr.
401 West 78th Street
(opkins, MN 55343
Minneapolis, MN 55435
Chanhassen, MN 55317
Robert Dittrich
John Dorek, et al
John M. Havlik, Jr.
Crestview Dr.
Chanhassen Bowl
Box 195
r 827
ew Ulm, MN 56073
P.O. Box 513
Chanhassen, MN 55317
Chanhassen, MN 55317
L eritage
Park Apts.
Philip & Nancy Hillman
Holiday Station Stores, Inc.
c/o Thies & Talle Mgmt, Inc.
c/o Tom & Kay Klingelhutz
4567 80th St. W.
F70 W. 78th St. Box 25
Rt. 3, Box 118A
Bloomington, MN 55437
hanhassen, MN 55317
Annandale, MN 55302
k erald Schlenk, Jean Von Bank
Arthur & D. Kerber
Al H. Klingelhutz
ary Goetze
511 Chan View
Gerald W. Schelnk
W. 78th Street
Chanhassen, MN 55317
8600 Great Plains Blvd.
C 25
hanhassen, MN 55317
Chanhassen, MN 55317
E. Korzenowski
Thomas J. and Mary Lou Krueger
Market Square Associates Ltd.
3 addseus
15 3rd Ave. S.
7136 Utica Lane
Partnership
Minneapolis, MN 55419
Chanhassen, MN 55317
200 W. Highway 13
Burnsville, MN 55337
Amy Roberts
Minnegasco, Inc.
Mithun Enterprises, Inc.
Lodging Co.
201 7th St. S.
900 Wayzata Blvd. E.
0 ational
855 West 78th Street, Suite 220
Minneapolis, MN 55402
Wayzata, MN 55391
Eden Prairie, MN 55344
t alph
G. Molnau
Gary L. Brown
Gale P. Pelcl
Ronald F. Dubbe
1831 Koenen Cir. W.
505 Chan View
56 West 3% Street
Excelsior, MN 55331
Chanhassen, MN 55317
;�m-N= 7 a
k chard & Mary Rasmussen
Richard S. Brose, Et Al
Gerald W. & L. Schlenk
c3 Chan View
c/o T.F. James Co.
225 W. 78th Street
MN 55317
P.O. Box 24137
Chanhassen, MN 55317
Chanhassen,
Minneapolis, MN 55424
W ark & Rose Ann Schlenk
Michael J. Sorenen
State Bank of Chanhassen
N01 Chan View, P.O. 145
Rt. 2, Box 187K
680 W. 78th St.
Chanhassen, MN 55317
Belle Plain, MN 56011
Chanhassen, MN 55317
1
Richard W. Steiner, Jr. Valvoline Instant Oil Change Dean Wallentine
P.O. Box 1717 301 Main St. E. 507 Chan View
Whitefish, MT 59937 Lexington, KY 40507 Chanhassen, MN 55317
Waterfront Associates
440 Union Place
Excelsior, MN 55331
Charles R. Wechterman
Shelly E. Mehl- Wechterman
509 Chan View
Chanhassen, MN 55317
Wilbar Properties
7811 Great Plains Blvd.
Chanhassen, MN 55317
Twin Cities & Western Railroad
2995 12th Street East
Glencoe, MN 55336
1 1
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MEMORANDUM
CITY OF 4
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: February 21, 1996
SUBJ: Consider Request from Country Suites Hotel to Amend City Code to Allow
On -Sale Intoxicating Liquor Sales without Food Sales, Al Schackman, National
Lodging
The ownership group of the Country Suites Hotel has entered into a purchase agreement with
Bloomberg Companies to buy the building directly to the east of the hotel (old Animal Fair
building). They would propose to construct a corridor from the hotel and to remodel the Animal
Fair building for meeting rooms (see attached site plan)! As the plan indicates, the area would be
sufficient for one large group or four smaller groups including an area where food could be
brought in and catered to any one of the four rooms. I'm aware of the fact that many of our local
businesses desperately need meeting rooms. The need is large enough for them to have
contacted Country Suites and inform them that they will probably have to reduce their room
commitments during the course of the year if meeting space is not provided within reasonable
proximity of the hotel itself.
The hotel owners believe it is critical to also have an area where conference or training session
participants can socialize at the end of the day. They are proposing that the Fireplace Room be
used for this purpose (again, see site plan). Country Suites is requesting that the building they
will be acquiring /remodeling be allowed to serve liquor in a similar fashion as exists for the
dinner theater. They would abide by all of the rules established for an exclusive liquor
establishment (bar); i.e. participants would not be allowed to take drinks back to their room, there
would be no room service from the bar to rooms; etc.
Most of the elements necessary for the hotel owners to be able to obtain a liquor license are in
place, i. e. the proposed bar area would be separated from the hotel, the Animal Fair building is a
separately legally described parcel, and the two facilities would be managed separately. The
license being sought by the hotel group would be for an exclusive liquor establishment (bar).
They would not be regularly serving food as part of the bar business. During the time frame that
the Pony Express was licensed in Chanhassen, their classification was that of an exclusive liquor
L
Mayor and City Council
February 21, 1996
Page 2
the Pony Express was licensed in Chanhassen, their classification was that of an exclusive liquor
establishment. Currently, Chanhassen Bowl also has that type of license.
Tonight's action is not approving an exclusive liquor license for Country Suites, but instead, an
,
indication by the City Council as to whether this concept is acceptable and whether the
partnership should go through the time and effort to make formal application. If the City Council
did approve the concept, I would have the City Attorney's Office verify that no other code
sections would be violated and to draft the necessary conditions to ensure that the ownership was
being established under state guidelines and with the conditions established locally.
Although Country Suites will be applying for an exclusive liquor establishment designation, staff
considers the potential of this operation creating some form of problem for the city or citizens
would be far less then for a typical bar. Accordingly, staff would recommend conceptual
approval.
I City Council Meeting - February 26, 1996
r�
Todd Gerhardt: This district goes for another 9 years.
Mayor Chmiel: 9 years. It's a total of 11. Okay. I don't have any questions on this either. I think what Mark
said, basically would have been my sentiments if we didn't move on this. It would be the city's loss as well so
I'd like to entertain a motion again.
Councilman Berquist: I would move approval of the private redevelopment contract with CSM and the City of
Chanhassen. Is there a motion back here somewhere?
Mayor Chmiel: Yeah.
Councilman Berquist: For a redevelopment agreement with CSM Corporation and their request for $401,914.60
in city assistance, and an amount not to exceed $140,000.00 plus $22,400.00 interest for reimbursement to the
construction of Dell Road.
Mayor Chmiel: Is there a second?
Councilman Mason: Second.
Councilman Berquist moved, Councilman Mason seconded to approve the Private Redevelopment Agreement
♦with CSM Corporation and their request for 5401,914.60 in city assistance and an amount not to exceed
5140,000.00 plus S22,400.00 in interest for reimbursement of the construction of Dell Road. All voted in favor
and the motion carried unanimously.
CONSIDER REQUEST FROM COUNTRY SUITES HOTEL TO AMEND CITY CODE TO ALLOW ON
SALE INTOXICATING LIQUOR SALES WITHOUT FOOD SALES AL SCHACKMAN NATIONAL
LODGING.
Don Ashworth: Thank you Mr. Mayor. Ownership group for Country Suites has a purchase agreement with
Bloomberg Companies to purchase the old Animal Fair building. They feel that it's critical to their business to
be able to establish meeting rooms that would go along with the hotel. They've attached a site plan of how they
would do that. In the process of analyzing their needs, they feel that this type of a facility where you're
1 bringing people in during the course of the day for seminar and conference type of thing, that they would like to
be able, at the end of that day to allow people to literally stay in that building and socialize, meaning they
- would like to be able to serve liquor to those people who had attended whatever function during the course of
' the day. In discussing this item with the City Attorney, there's several ways we could approach, actually
modifying the existing ordinances so as to allow the license to actually be issued to conform with State Statute.
However the basic question is really one of, is the City Council in agreement with the general idea that Country
Suites is presenting so that before I ask Roger Knutson's office to go through expense in terms of having them
make out the application, doing modification ordinances, that we have some sense that the Council generally
supports the concept. So you are not approving this item tonight but more or less telling me whether or not I
should have the City Attorney proceed with the ordinance modification and whether the Country Suites people
' should be invited to go through the more lengthy application process. And again, Mr. Schackman is here. I've
asked him, if you make a presentation, if it could be brief.
1 Mayor Chmiel: Good. Mr. Schackman, would you like to do that please?
I
City Council Meeting - February 26, 1996 1
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Al Schack Mr. Mayor and members of the Council. My name is Al Schackman and I'm with the
development and construction for National Lodging Companies. I'm not a stranger to Chanhassen. I recently
expanded our 84 room hotel to 120 rooms and the request we have today is merely a further extension of
additional services that we anticipated all along. I'm not sure how familiar all of you might be with National
Lodging Companies. We're a full service hotel development, acquisition and management: company based in
Eden Prairie. National Lodging Companies sounds like some large national or international conglomerate and
that we are not. We are a closely held corporation that dates back to about 1987. At that time John
Klinkhammer, the current Chairman of the Board, developed or opened an 89 room motel in Coon Rapids,
Minnesota. It was a Travel Suites Motel, and it was a new concept. It was limited service hotel and it had a
totally radical concept in terms of the mix of rooms that were being offered and that hotel. caught the attention
of the Carlson Company and within a month of it's opening, it became the first Country Suites Hotel by
Carlson. That effort now, through Carlson's franchise efforts and others, has grown to I think about,
approximately 65 similar hotels nationwide. The significance here is that the first one was Coon Rapids, was
developed by the Chairman of our company and subsequently then motels were developed in Fargo, and I think
it was in '89 and '91 when the original 84 room hotel opened here. National Lodging today has 4 hotels that we
own. We own 5 hotels. Chanhassen, White Bear Lake, Hopkins, Fargo and Minot. We manage 13 hotels in
total encompassing about 1,200 motel rooms. So if that helps to understand a little bit what National Lodging is
and may clear some things up. I've gone to other meetings where people have talked of National Lodging
Company was in fact some large company based some place else and doing business worldwide. We're not.
We're home grown independent business people. We currently have six hotels in various :stages of development.
,
Another one in Coon Rapids, Anoka, Hastings, Minneapolis, Vandais Heights and Cripple Creek, Colorado. So
that's a little bit about what we're up to in addition to what we want to do here. Per the staff report our purpose
here tonight is
to continue rounding out the services necessary to solidify and strengthen our lodging position in
Chanhassen. This is not an idea that just came to us recently. It was an idea that was integral with our
planning when we went into the expansion to go to 120 rooms and our plans will represent that. I will make
this brief but I do have 3 boards that are intended to illustrate how we're going to function.. And these are done
for purposes of communication and hope that it does that. This board, I'm positioning this so that if you were
standing across West 78th Street on the curb, you'd be looking at the front of the building. The original hotel
structure is that portion from there over. That's the original 84 rooms. We created a connecting link between
That and built the 36 room addition here and then this cross hatched building, the Animal Fair building that this
proposal is based on. When this is done it will be a block long development from there to here and this will be
connected. Lounges, meeting rooms and banquet space are not new to our hotel effort. We have lounges in
four of other hotels with liquor license and they do a lot to strengthen the effort that we are making by
providing expensive banquet rooms and expensive meeting rooms. This board then is smaller but it gives you
a little bit more of a close up. It only shows a portion of the 84 room motel with the swimming pool in blue,
the connecting link that is used both for access between the two hotel buildings and the additional seating
capacity for our continental breakfast effort and it also will become some pre- function area for the meeting
rooms that are going to occur here. The design of the additional 36 units included an interior walkway that now
terminates at this edge of the building, and that was designed anticipating an eventual deal to connect here.
This
plan then shows another connecting wing here and we enter into the building and avail ourselves of various
services there. The final, the green areas indicate just that. Those are the areas that separate the building.
Those are the court yards that remain unfinished. We weren't able to get all our plantings in before freeze up
and we opened December 20th, so we have a large opportunity to embellish. We have a letter of credit with the
city for $10,000.00. We've got plenty of money to glorify that. This then shows the additional green space that
we've provided. Now this drawing is colored in, not to suggest carpet colors. But merely to illustrate a little bit
more clearly from where you sit, and I'm going to put it on it's side because this now then orients it the same
way. If you were standing across the street, this is the way you'd be looking at it. We don't have it all on this
10'
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I City Council Meeting - February 26, 1996
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drawing but the would access through another causeway here, into a service area of the building with a men's
and women's, where the men's and ladies' restrooms are. A very convenient accessway into the banquet and
meeting rooms and into the lounge there, here and here.
Mayor Chmiel: For just the viewing audience, people that are looking at it, that was the old Animal Fair.
' Al Schackman: That is the old Animal Fair building. This, just what this does physically for us is it provides
the ability to provide a number of services to our customers and the public. We can seat 64 people in this area.
1 50 here. 24 and 30 so we have about 150 people who can be seated at banquet tables at one time here and if
we went to auditorium type seating or rectangular banquet tables, we could conceivably have more. The lounge
area seats about 67 people so that itself could also be used as a function here. This plan shows the location of
the bar. The existing fireplace accessing here. Table seating. A lounge in front of the fireplace. Easy chairs.
'- And the fire equipment is all identified here. This portion of the building I think is to service the meeting
rooms and that's the catering kitchen so to speak and where food can be brought in, broke down, set up for
display and served to large groups. Conceptually that's what we're doing. Why is it important to us? Number
one, it's no small fact in our mind that we look at this hotel as being a flagship of our effort. It is. It's a hotel
that out performs all of the other hotels in the chain. It's one that we're proud of. It's one that produces a better
than industry averages. So from that standpoint we want to round out the service the same as we have in Fargo,
White Bear Lake, etc. This 120 rooms represents a very significant investment for us. We have development
agreements to take at a minimum the value for real estate tax purposes of $2 1/2 million on the original 84
rooms. $1.3 million on the addition so we're a significant taxpayer. And the perpetuation and solidification of
this operation is very important. Another reason that's important to us is that the meetings and banquets
encourage extended stay and thereby enhance our occupancy. They fill rooms that would otherwise be vacant.
It provides a marketing edge for us. We have more to sell. And it will strengthen our overall application so
those are some of the reasons it's important to us. In terms of importance to the city, this function would have
provided for the rehabilitation of a portion of a very aged, run down building that can certainly stand rehab. It
will, from the city's standpoint, provide a first class service highly in demand. It will strengthen the viability of
the downtown businesses. It fits in with the conceptual plan for downtown redevelopment. It provides an
additional downtown location for fraternal business, social, religious meetings and most certainly for weddings.
So in a quick nutshell, that's what we're doing. That's why we're doing it. That's why we think, and why we
know it's important to us and why we think it's important to the city. I'm available for any questions you may
have and with that we respectfully request your concurrence that this concept is worthy and that we can move
on with our plan. Timing is important to us. We need to keep moving. Lost opportunity exists in every day
we ... that goes by. I appreciate your attention. I'm here for any questions.
Mayor Chmiel: Thank you. Steve, do you have any questions?
Councilman Berquist: Yes sir. I do have a couple. You mentioned, what's your last name again sir?
Al Schackman: Schackman. S- c- h- a- c- k- m -a -n.
Councilman Berquist: Mr. Schackman, you mentioned you have 8 hotels nationwide? Nationwide, your
company has 8 hotels, is that correct?
Al Schackman: No. Our company now owns five hotels.
' Councilman Berquist: Five hotels, four of which have liquor and this one does not at this point.
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City Council Meeting - February 26, 1996
Al Schackman: Right.
Councilman Berquist: You've got an entrance, the existing entrance to the building will remain an entrance. Is
it the plan to,
Al Schackman: Are you talking about this entrance? '
Councilman Berquist: Yes.
Al Schackman: Yeah. This plan shows a modification of it and please appreciate that these are early on
conceptual.
Councilman Berquist: Well the question is, if I wanted to walk in there and enjoy the lounge and I wasn't a
guest at the hotel, I have that ability?
Al Schackman: Absolutely.
Councilman Berquist: Anyone can walk in there and partake if they so choose.
Al Schackman: Absolutely. '
Councilman Berquist: Okay, that was one question. Let's see here. Well I can't think of a hotel that I've been
in that did not offer some form of a lounge area. The ordinance modification expenses. On the back of the
city?
Don Ashworth: Typically,
Councilman Berquist: Okay. That's all the questions I have.
Mayor Chmiel: Alright. Colleen.
Councilwoman Dockendorf: Well my only question was, Steve's as well, just further clarification. You plan on
this being open at all times, not just specifically related to conferences? I mean it will be a functioning bar
open to hotel clientele at all times?
Al Schackman: Yes. Yes it will. I
Councilwoman Dockendorf: And also open to the public.
Al Schackman: And also to the public, yes. Nov under whatever hours are permissible by ordinance and by
law. And we certainly aren't going to expand on that. We may contract that somewhat.
Councilwoman Dockendorf: Are you planning on doing advertisement as such as a new bar in town or is it, be
more low key just really geared to your hotel clientele?
Al Schackman: Well our promotion and our marketing effort would be to market it as a full service banquet '
and conference facility. So the emphasis will not be on liquor. The emphasis will be on the full function. No,
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City Council Meeting - February 26, 1996
we don't intend to operate a specific purpose bar. Now certainly it's a money making venture but we're not
creating a place for the hand around's to sit from the time they open until the time they close. That's a part of
the business. We like the idea that the amendment to the ordinance and the restrictions under law prohibit us
from room service in the hotel and prohibit anyone from taking drinks off of this licensed premise. And that
makes it a lot easier for us to manage and we believe manage a clean house. If we didn't do that, the rest of
our business would suffer.
Councilwoman Dockendorf: Okay,
' Mayor Chmiel: Michael.
Councilman Mason: Well my questions were the questions that have been stated. Obviously there's going to be
some discussion. Yeah, I have some concerns about general public and guests and whether we want to open a
new bar in town but my specific questions have been answered so we'll wait on that, thanks.
Mayor Chmiel: Okay, Mark.
Councilman Senn: Question wise, just one I guess that hasn't already been asked. How do you, I guess how do
you plan on stopping your hotel patrons from taking liquor back? I mean, you know to me that puts you in a
situation you're never going to be able to enforce. I mean what are you going to do, tell hotel guests no you
can't?
Al Schackman: I'd be foolish Councilman Senn to say that there won't be bar people who may intend to do that
but we're going to manage it to the extent that we're not going to allow the glasses to be carried to the pool.
We're not going to allow people that we knowingly see taking drinks to their rooms. And that's the way we
manage. But I'd be more than foolish if I tried to convince you that someone wouldn't tuck one under his coat
when he walked out. That may happen. We're going to police it to the fullest extent that we can possible. We
are prohibited by law in serving liquor in any other portion of this property than this premise. This is what
would be licensed and we're going to do everything we can to not be in violation of any of the restrictions on
our activity. From the standpoint of complying with law and also from the standpoint of attention to detail and
managing our business. We don't seem to have a problem with that in other locations. At least we have not
had any incidences where it's come to our attention that there's been any brushes with the law or any hotel
' patrons or hotel guests who may have caused a raucous because of it. It gives us teeth in our policy.
Councilman Senn: The rest I have is for discussion.
' Mayor Chmiel: The other thing, just one other thing with that. The time that's being spent on this Don, and
cost associated with this. Would this be picked up by the proposer?
Don Ashworth: The Council could establish that as a condition. I see most of the cost being associated with
the hotel themself in the actual preparation of the application. Most of the work completed by the City
Attorney's office is going to be in terms of verifying that there won't be any other ordinances I think the Council
may recall 4 -5 years ago we established zones in that area and I think there needs to be some additional
research as to whether or not those zones need to be modified. Maybe it was less time than that. Maybe it was
2 to 3 years but generally when you make those kinds of, I'll call it general ordinance amendments, the city
typically stands behind it. You should also realize there will be a fairly good fee associated with this. I mean
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City Council'Meeting - February 26, 1996
we're going to come out very well. If Council would like, I think it's fair to say that I can ask Roger's office to
ensure that costs associated with modification would be kept under $500.00.
Mayor Chmiel: Okay. So we're at a point whether this concept is acceptable. And whether the partnership
should really go through that time and effort to make a formal application. If Council does approve the concept,
as Don has mentioned, we would have the City Attorney draft the necessary language to either accept or not
accept, according to Council's wishes. So with that, is it consensus to proceed with that concept?
Councilman Berquist: I would be in favor of them pertaining a liquor license application.
Mayor Chmiel: Colleen.
Councilwoman Dockendorf: As would I. I mean it's not inconsistent with what the Dinner Theater allows and I
think it's part of hotel business.
Mayor Chmiel: Mike.
Councilman Mason: I would agree.
Mayor Chmiel: Mark.
Councilman Senn: I guess I have to say this isn't what I expected tonight. I mean basically, based on the
information we have in the report, I really thought what we were dealing with here was something that was
going to be tied to the meetings and conferences. You know a place for people after meetings and conferences
to meet afterwards, as it says in the report and stuff. You know I guess I've said it in the past and I guess I'll
say it again, generally I have some concerns over granting additional liquor licenses without food service and
that effectively is what we're opening the door here to. And I guess lastly, if I can work through those problems
and make it work, I guess I have a real hard time understanding how we can say yes to something like this
when we just said no to a local restaurant who wanted liquor.
Mayor Chmiel: A little different location.
Councilman Senn: Well, a little different location. You know a lot of the same concerns. I mean I heard
concerns about kids being around the shopping center. Well I can tell you, I've stayed in this hotel and there's a
ton of kids around this hotel all the time. Especially on weekends. And stuff like that and I just have a real
hard time separating where we draw the line on those sort of things.
Mayor Chmiel: Well that's normally why Council makes those decisions as they do. I guess, pardon. Yes Al?
Al Schackman: I believe I might comment, respectfully Councilman Senn. We're not proposing anything
different than any other large, similar hotel would not be requesting. And in terms of setting a precedent, and I
appreciate that it does that. However, I think restrictions could be placed on this approval whereby it's only by
virtue of the 120 room adjacent hotel that this action would be taken. The other point that I'd like to make is
That we would not do the conference and meeting rooms unless we had the lounge service available. Not at this
location. Economically it just doesn't work for us. We need the influence that that lounge will have in
enhancing longer stays and promoting conferences where we have people occupying rooms that would not
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otherwise be occupied. It's a service that's necessary for us to move ahead with the proposal. So that, I think
I've given you all the information I can to base your deliberations on.
Councilman Senn: Well, I'll take exception with your remark because I've stayed in many, many limited service
hotels, none of which have lounges. Limited service hotels... say, I find lacking lounges as much as I find
having them so to say that all hotels of this size have major lounges I think is a mis- statement.
Al Schackman: I think it is a mis- statement. What I meant to say is that all hotels of this size that have
significant meeting room space. Banquet space.
Mayor Chmiel: Michael.
Councilman Mason: Considering what I'm sensing from the rest of the Council, I think that's kind of a moot
point anyway at this point.
Councilwoman Dockendorf: Well I do have a question however of our attorney. Can we put any limitations on
how advertising is done? My concern is that you'll want to go head to head with Pauly's or one of the other
bars.
Al Schackman: I guess I'll stand here before you and stake my professional reputation on the statement that
we're not going to have glitzy beer signs in the windows. We're not going to advertise hot dogs and brats with
your ... It's totally a different operation.
Councilwoman Dockendorf. But can we put any kind of stipulation?
Mayor Chmiel: Sure we can.
Elliott Knetsch: We can be more restrictive than State law when it comes to liquor licensing. Advertising is an
area that is now regulated by the State but I don't think that's an area, because of First Amendment concerns,
that we could, you can't say no 2 for 1 advertising. That sort of thing. But you could address it in other ways,
such as hours that it could be open. Things of that nature which would try to be, allow it to be used for the
conference banquet type things but perhaps not open the full range of hours that bars are.
Mayor Chmiel: Okay. I guess Council has given their position on this and we'll proceed with that and come
back with something to see whether or not it's going to be fully accepted by Council. So I guess the neat
procedure would be to provide that information back to us. Okay.
Al Schackman: I'm leaving here then ... that we have Council's concurrence that the concept is workable for the
issuance of the license?
Mayor Chmiel: Until the final issuance of that license and full review of it prior that time, yes.
Al Schackman: Thank you for your time and attention. Looking forward to continuing to work with...
strengthening business here in Chanhassen.
Mayor Chmiel: Good, thank you.
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